Good Morning Friends.
The big move in oil yesterday inspired the bulls yesterday to reach out for new record highs in Dow but that early enthusiasm seemed to fade as the day progressed. The SPY, IWM, and QQQ all turned in bearish signals and a concern that the bull run could be running out of energy. Clearly, we are short-term overbought but the question is will the indexes actually pull back strongly or could it be just a choppy resting consolidation? I don’t have an answer to that because my crystal ball is on the fritz but do think that the bulls have been very hungry for a long, long time and don’t think they will give up easily.
Once again we have Fed members out today in what has become a nonstop conversation about interest rates. Will they, won’t they blah, blah, blah. Here’s a thought, shut up and make a decision! Of course, we have the normal jobless claims this morning as well as ADP, ISM, PMI and pending home sales numbers out this morning that could move the market this morning. However, my guess is we will see a choppy low volume market most of the day as we wait for the big Employment Situation number on Friday morning.
The long and short of all this is to be a little cautious this morning and avoid chasing into positions. Good things come to those who maintain their discipline and resist emotional decisions. Have a fantastic day!
Trade Wisely,
Doug
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Good Morning Traders.
At the close yesterday, it sure looked like the market would be selling this morning but the bulls refuse to give up this bull rally at least at the moment. As I write this the Dow and the S&P futures at pointing to new record high opens. One reason for the sentiment change is that OPEC is planning a production cut and the other seems to be appointments made by Trump getting a market approval of his selections.
We have a bunch of economic numbers today as well as several Fed speakers so there are plenty of ways the early bullishness could be toppled so keep an eye on the headlines for clues of a possible shift.
Currently, the RWO holdings seem to be well positioned to benefit from the market bullishness so make sure you have your profit orders in place just in case the morning pop reached out and grabs them. Have an awesome trading day!
Trade Wisely,
Doug
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Good Morning Friends.
Yesterday we finally saw a little profit taking take place which was way overdue in my humble opinion. Now the question on everyone’s mind is how long will it last and when should we start buying? I wish it was in my ability to tell you the exact date and time but as always the best we can do is wait for the price action on the chart to tell us. Until then relax, watch and avoid the temptation of predicting.
There are clearly so many bullish charts setting up right now if we will have the privilege of being very picky. There is no need to feel pressured or rushed the trades will come to us if we just let them.
This morning we will get a reading on GDP at 8:30 eastern time. The market has a tendency of reacting to this number so keep an eye on the pre-market futures. As I write this they are pointing to a slightly bullish open but that can quickly change depending on the market’s reaction to the number. We will also hear some Fed speak this morning so anything is possible when they begin to pontificate on rates.
My personal bias based on the close of yesterday is for more profit taking to take place but we all know the market could care less about what I expect or want. Have a fantastic day.
Trade Wisely,
Doug
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Good Morning Friends and Happy Monday.
It would appear that the market has a bit of an attitude this morning suggesting a gap lower or about 60 points. This seems to mostly be due to falling oil prices with the news that the OPEC is having trouble finalizing it’s production agreements. A pullback in certainly in order due to the huge run up after the election. A healthy pullback would most likely set up some very good trade entries so bring it on I say.
There is nothing on the economic calendar but let’s not forget today is Cyber Monday and we could easily see light volumes as shoppers seek to bag the big discounted items for Christmas.
There are a lot of really nice looking charts out there so we will plenty to choose from as we work our way through December and into 2017.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good Morning Friends.
This morning the futures are fluctuating back and forth between a slightly positive to slightly negative open after closing yesterday and new record highs. There seems to be little to no interest in profit taking before the holiday at this point however, we will have several economic reports today that have the potential of moving the market.
After the morning rush, I would expect to see volume drop like a rock although we could see a little activity right after the FOMC minutes are released. My plan is to manage the positions that I’m in and work on watchlists today. Anything is possible but I think its unlikely I will be sending out new trades today.
Of course, the market is closed on Thursday and Friday it will only be open half a day with very light volume. Due to the holiday RWO will be closed both Thursday and Friday so there will not be morning videos or an open RWO room both days. We will get back in the saddle on Monday and hopefully the market will remain bullish.
I wish you all a safe and Happy Thanksgiving.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good Morning Friends.
As turkey day draws near the market continues to climb with the Dow leading the way. The DIA, IWM, and the SPY have all made new record high levels but the QQQ has yet to do so. Looking at the chart I suspect it will catch up and print a new record high soon, possibly even today.
WE have existing home sales on the economic calendar at 10 eastern time today . This number in the past proven to move the market so wait and watch for the reaction.
There is little left to say this morning except we could easily see volumes dropping today as may traders will likely head out early for their holiday plans. The market is bullish so it’s okay to get long but I would use caution about getting too long ahead of the holiday.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning traders.
It is always nice to travel but after being gone for a week it’s also great to come back home. Last week was a crazy week with 4 AM wake up calls and long days at the show but I wouldn’t have missed for the world because we had the chance to talk with so many wonderful people interested in trading.
I have to admit I was surprised to see how well the market held last week. I have been expecting a pullback but it appears the market is so bullish that a consolidation may be all that we get. I have quite a few charts of interest that I will be watching for potential trade entries so keep an eye out for the alerts. I also have to acknowledge the potential of a light volume week with Thanksgiving on Thursday and the FOMC minutes just the day before.
It’s great to be home and getting back into a routine. The RWO room will be back open today at 11 AM eastern so I hope to see you all there.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone from the Las Vegas.
The last day of the show so Monday everything will return to normal operation Monday morning with morning videos and in the RWO room we will crank it up and get back to training.
The market sure has a way of keeping us humble. Yesterday I suggested that further pullback was possible and that financials being so overbought could lead the way. As you know it turned out just the opposite with the market closing up and financials led the way. This morning Dow futures are just slightly lower suggesting a little weakness at the open but Friday’s have tended to be pretty positive of late. The one thing tossing caution into the mix today is that it’s option expiration day which means anything is possible and the price action can be a little wild.
I know it’s tempting to chase right now but would encourage you to not do so. We all know that stocks will retrace in due time. Chasing is a bad business and can get you in just before the pullback putting in you in a losing positions right from the start. At times like this it is far better to maintain your discipline and wait for the better entries.
A few charts that are setup to move. ANF, TSCO, TTWO, CARB, AGX, VSTO, SWKS, BMY, AMKR, PCRX, GIII, ZOES, EDIT, VHC, RT. There of course are many others that loop pretty good but to be honest yesterday was so busy I didn’t get nearly as much tome to look at charts as I would have liked.
FYI; there is no video attached to this email because we are at the money show in Las Vegas. Videos and normal operation will return next Monday. Thank you for your understanding.
I wish you all great trading today and an awesome weekend. See you Monday!
Trade Wisely,
Doug
Good morning everyone from the Las Vegas.
As I have been watching the futures this morning it seems the market is searching for direction. Clearly the Trump rally continues to keep us overbought for the very short term. If you haven’t taken any rally profits as of now I would sure be thinking about that this morning.
A few stocks that have really good setups this morning are TSCO, BMY, CPB, CORE, GIII, IBM, BBY. Keep an eye on AMD, SQ, PAY and ANF. There are many, many more that could setting up when and if we get a little more pullback or longer consolidation.
I would keep an eye on the big banks. So many of them seem to have really over extended. A pullback in this sector could be the signal of further profit taking.
Make no mistake I am all kinds of bullish and believe the market has made a fundamental shift that should provide much better trading the months ahead. Continue to prepare by building and marking up watchlist charts.
FYI; there is no video attached to this email because we are at the money show in Las Vegas. Videos and normal operation will return next Monday. Thank you for your understanding.
Have a fantastic day.
Trade Wisely,
Doug
Good morning everyone from the Las Vegas.
Top of the morning friends. This run has been extremely hot but we all knew it could not stay like this much longer. This morning the Dow futures are suggesting a gap down of about 50 points and although its a bummer to see some selling that’s just what I was hoping would happen. A healthy pullback could and most likely will setup some very good entries.
This has been a very long time coming but I believe the bulls have taken control and will remain in control through the end of the year. However, because this was and extraordinary run up don’t be to surprised if the selloff seems a bit harsh. There is no doubt that the market has been fueled up on heavy emotion after the Trump win. Emotions can switch very quickly and possibly over do it with the selling as well. Soon cool heads will prevail and the price action will settle down in a trend that personally think will be bullish.
I think today the best thing to do is manage the positions that you are in and avoid adding new risk. Again this is exactly what needs to happen so quality entries with stops set just below new levels of support. Also keep in mind that a consolidation that sets a level of support is just as good as selloff, so it we simply pause and rest for a little while we should be able to find very good entries.
FYI; there is no video attached to this email because we are at the money show in Las Vegas. Videos and normal operation will return next Monday. Thank you for your understanding.
Have a fantastic day.
Trade Wisely,
Doug
